UNAUDITED FINANCIAL STATEMENTS Q1 2014 //
FP GROUP INVESTORS' DAY
MANAGEMENT BOARD OF FRANCOTYP-POSTALIA HOLDING AG
BIRKENWERDER | 28 MAY 2014
FP-FRANCOTYP.COM | 2
DISCLAIMER
This report contains forward-looking statements on the business
development of the Francotyp-Postalia Group. These statements are
based on assumptions relating to the development of the economic
and legal environment in individual countries and economic regions,
which we have made on the basis of the information available to us
and which we consider to be realistic at the time of going to press.
The estimates given entail a degree of risk, and the actual
developments may differ from those forecast. Consequently, any
unexpected fall in demand or economic stagnation in our key sales
markets, such as Western Europe (and especially Germany) or in the
USA, UK, or Canada, and Singapore will have a corresponding
impact on the development of our business.
The same applies in the event of a significant shift in current
exchange rates relative to the US dollar, sterling, Canadian dollars,
Singapore dollars. In addition, expected business development may
vary if the assessments of value-enhancing factors and risks
presented in the 2013 Annual Report develop in a way other than we
are currently expecting.
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 3
FP GREW PROFITABLE IN TRADITIONALLY STRONG Q1
FP increased all key figures in Q1
Software and Mail Service business in Germany
as growth driver
Implementation of new sales channel is progressing
FP confirms its guidance for 2014
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
EBIT up by 8.8% to €3.7 million
REVENUE up by 2.1% to €44.4 million
EBITDA up by 8.1% to €6.7 million
FP-FRANCOTYP.COM | 4
FP’S GROWTH STRATEGY IS PAYING OFF
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
New growth
opportunities
through
fully electronic
communication
Expansion
of outsourcing
and consolidation
business
Growth
in
traditional markets
Expansion
into
emerging markets
Markets
new
tr
adit
ional
new traditional
Products
FP-FRANCOTYP.COM | 5
PROGRESS IN MAJOR AREAS IN Q1 2014
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
Implementation
of De-Mail at a
growing number of
customers
Further revenue
growth in
consolidation and
hybrid-mail business
Focus on
Roll-Out of
PostBase: Denmark,
Norway,
Netherlands,
Belgium
Markets
new
tr
adit
ional
new traditional
Products
Russia
India
FP-FRANCOTYP.COM | 6
FOCUS ON AUFBRUCH 2015
Implementation of new sales channel is progressing:
In Q1, FP has won dealer associations like Büroring (350
independent dealers) and WinWin Office Network (30 mid-sized
dealers) as well as regional partners with a close contact to SMEs
Ongoing optimisation of sales approach:
FP will strengthen the sales force in 2014 using
product bundles (FP Box) and telesales
Ongoing optimisation of cost structure, e. g. by improving the
channel mix between direct and indirect sales
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 7
SALES PUSH IN GERMANY WITH PROMISING RESULTS
International Sales were
influenced by negative currency
effect of €0,5m
German organization benefits
from multi-channel approach
mainly Software and Mail Service
business
1 | Non-consolidated figures according local GAAP. Revenue with third parties.
Sales Germany 1
Sales International 1
Production 1
Revenue by Segments
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
22.1 23.0 24.8
19.3 19.518.8
1.01.3 1.1
Q1 2012 Q1 2013 Q1 2014
€ million
44.4 43.5 41.8
FP-FRANCOTYP.COM | 8
HIGH PROPORTION OF RECURRING REVENUES
Rental/Leasing
Mail Services
Consumables
Teleporto
Service
Software
€ million
Product Sales
44.4 43.5 41.8
Major revenue drivers
Growing demand for multi-
channel offers in Germany
Mail Services +18%
Software + 9%
Growth constraint
Negative currency effect of
€0.5m mainly shown in rental
business and product sales
End of decertification in Austria
High proportion of recurring
revenues (82%) is a perfect base
for sustainable business
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
5.7 5.6 5.7
9.8 10.011.8
5.3 5.45.6
2.9 2.92.7
7.0 7.17.2
3.0 3.33.6
8.09.2
7.8
Q1 2012 Q1 2013 Q1 2014
FP-FRANCOTYP.COM | 9
INCREASE IN MATERIAL EXPENSES
High demand for
consolidation business with
high material ratio leads to
higher material expenses
17.2
20.321.8
41.1%
46.7%
49.0%
Q1 2012 Q1 2013 Q1 2014Material Expenses in % of Revenue
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
€ million
FP-FRANCOTYP.COM | 10
DECREASE IN PERSONNEL EXPENSES
Decrease in personnel
expenses results from
restructuring efforts
Number of employees
decreased by 2.3% from
1,082 (Q1/2013) to
1,057 (Q1/2014)
Personel expenses will
remain stable
14.813.9 13.7
35.4%
32.0%30.9%
Q1 2012 Q1 2013 Q1 2014
Personnel Expenses in % of Revenue
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
€ million
FP-FRANCOTYP.COM | 11
EBITDA TRADITIONALLY STRONG IN Q1
EBITDA increases by 6.6%
Profitability drivers
Higher revenues
Efficiency of new
production site
Lower other expenses
Profitability constraints
Negative currency effect
of €0.3m due to
unexpected accentuated
weakness of the US-
dollar
Improvement of EBITDA
margin to 15.1%
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
4.1
6.26.7
Q1 2012 Q1 2013 Q1 2014
€ million
FP-FRANCOTYP.COM | 12
INCREASING EBIT DESPITE HIGHER DEPRECIATION
Depreciation and
amortisation rose as
expected from €2.8m to
€3.0m
Increase of depreciation will
continue as long as US
decertification is running
Nevertheless EBIT improves
by 8.8%
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
1.8
3.43.7
Q1 2012 Q1 2013 Q1 2014
€ million
FP-FRANCOTYP.COM | 13
SUSTAINABLE PROFITABILITY OF FP
€ million Q1
2014
Q1
2013%
Revenue 44.4 43.5 2.1Change in inventories 1.0 0.7 42.9
Own work capita l i sed 3.8 3.7 2.7
Total output 49.1 47.8 2.7Materia l expenses 21.8 20.3 7.4
Gross profit 27.4 27.5 -0.4Personnel expenses 13.7 13.9 -1.4
Other income ./.
Expenses7.1 7.4 -4.1
EBITDA 6.7 6.2 8.1as % of revenue 15.0 14.4
Depreciation/
Amortisation3.0 2.8 7.1
EBIT 3.7 3.4 8.8Interest result -0.6 -0.5 20.0
Financia l results -0.1 0.2 n/a
Tax result -1.1 -1.0 10.0
Net profit/loss 1.9 2.2 -13.6
EPS (€) 0.11 0.14 -21.4
Revenue growth in Germany
Improvement of EBITDA due to enhanced cost
structure
Financial results are influenced by currency
effects due to reporting date evaluation at
different exchange rate
Tax ratio on similar level compared to fiscal year
2013 (37,7%)
Mainly the currency effects lead to a decrease in
net profit and EPS
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 14
PROFITABLE GROWTH STRENGTHENS EQUITY
Equity ratio improved to
19.2% (2013: 18.9%)
Current assets grew due to
increase of PostBase
production for sale and
rental business
Non-current
Assets
Current
Assets
Non-current Liabilities
Current Liabilities
Assets Equity and Liabilities
137.4 144.3 144.3 137.4
Equity
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
66.5 73.561.8 66.4
70.970.8
49.850.3
25.927.7
2013 Q1 2014 2013 Q1 2014
€ million
FP-FRANCOTYP.COM | 15
HIGH LEVEL OF INVESTMENTS IN Q1 2014
CAPEX Drivers:
Continuing high
investments in leased
inventories
MyMail successor and
country variants
0.81.1
2.82.6
0.30.3
0.10.1
Q1 2013 Q1 2014
4.0 4.1
R&D
Leased inventories
Tangible assets
Intangible assets
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
Investments will increase during the year 2014
€ million
FP-FRANCOTYP.COM | 16
STRONG OPERATIVE BUSINESS
STRENGTHENS LIQUIDITY
Cash and cash equivalents at the
beginning of period
Cash Flow from ...
... o
pe
rati
ng
acti
viti
es
... i
nve
stin
g ac
tivi
tie
s
...f
inan
cin
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tivi
tie
s
Cash and cash equivalents at the
end of period
Cash and cash equivalents at the
end of period
Cash and cash equivalents at the
beginning of period
* | incl. change in cash and cash equivalents due to currency translation 2013: €0.0m, 2014: €-0.0m
Cash Flow from ...
... o
pe
rati
ng
acti
viti
es
..
. in
vest
ing
acti
viti
es
..
.fin
anci
ng
acti
viti
es
Free cash flow
drivers:
Cash flow from
operating activities
rose to €6.4m due to
growing profitability
and lower increase of
working capital
compared to prior year
(2013: €3.1m/
2014: €1.5m)
Stable cash flow from
investing activities
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
-4.1
6.4
9.5
5,6
5,3
-4.0
0.7
0.5
7.6
6.7
7.6
6.7
+1,3 Free Cash Flow
+2,3
Free Cash Flow
Q1 2013 Q1 2014
€ million
FP-FRANCOTYP.COM | 17
33.3
30.127.8
2012 2013 Q1 2014
FURTHER REDUCTION OF NET DEBT
Net Debt 31 March 2014 in € million
Financial Liabilities 39.1
Net Cash and Cash equivalents 11.3
= 30.7 cash and cash equivalents - 21,9 restricted cash
+ 0.7 securities
+ 1.8 own shares
Total 27.8
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
€ million
FP-FRANCOTYP.COM | 18
IN 2014, FP WILL INVEST IN FUTURE GROWTH
Investments in rental markets
Focus on roll-out of PostBase in US rental market (ongoing
decertification), France (Europe‘s largest franking machine
market)
Investments in R&D and tooling
Further PostBase country variants and a new franking machine
system especially for small letter volumes (mymail successor)
Replacement investments
FP will invest in new sorting machines and cartridge production
machines
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 19
AFTER A STRONG Q1, FP CONFIRMS GUIDANCE
EBIT growth estimated to at least
€12 million
Revenue growth estimated to at least
€173 million
EBITDA growth estimated to at least
€25 million
168.9 173
2013 2014*
10.4
12
2013 2014*
+13%
+2%
+15%
22.2
25
2013 2014*
* Guidance
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
€ million
WE WILL NOW ANSWER YOUR QUESTIONS //
FP GROUP INVESTORS DAY
MANAGEMENT BOARD OF FRANCOTYP-POSTALIA HOLDING AG
BIRKENWERDER | 28 MAY 2014
APPENDIX //
FP GROUP INVESTORS DAY
MANAGEMENT BOARD OF FRANCOTYP-POSTALIA HOLDING AG
BIRKENWERDER | 28 MAY 2014
FP-FRANCOTYP.COM | 22
FP BOARD OF MANAGEMENT
Hans Szymanski CEO and CFO
Member of the Board since December 2008.
Born in 1963, economics graduate, responsible for Finance, Accounting,
Controlling, Human Resources, Legal and Compliance, IT, Research and
Development, Quality Management, Production, Purchasing, Logistics, and
Strategic Business Development.
Thomas Grethe CSO
Member of the Board since June 2013.
Born in 1959, banking and economics graduate (WAH), responsible for Sales
Germany and International, Strategic Business Development and Product
Management, Internal Audit, Marketing and Corporate Communications.
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 23
FP STOCK INFORMATION
ISIN DE000FHP9000
Segment Prime Standard/ All Industrial
IPO 30 November 2006
Reuters FPHG.DE
Shares 16.16 million
Freefloat 82.4% (according to GSE Frankfurt)
Coverage Hauck & Aufhäuser, Warburg Research
* | These are data based on share capital of 14.7 million shares
Shareholder Structure
3R Investments
10.3%
ARGOS Funds SICAV 5.2%
Saltarax GmbH 3.6%
Ludic GmbH 3.5%
HANSAINVEST 3.4%
Alceda Fund Management SA* 3.1%
Scherzer & Co. AG 3.0%
Eric Spoerndli* 5.0%
Rudolf Heil 3.0%
Treasury Stock 2.3%
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 24
CONTACT
Sabina Prüser
Corporate Communication
Vice President Investor Relations/ Public Relations
Francotyp-Postalia Holding AG
Triftweg 21-26
16547 Birkenwerder
Contact
Fon +49 3303 525 410
Fax +49 3303 53707 410
Blog
www.fp-francotyp.com/blog
www.facebook.com/FPFrancotypDE
www.twitter.com/ir_fp
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP-FRANCOTYP.COM | 25
FINANCIAL CALENDAR
19 June 2014
Annual General Meeting in Berlin
28 August 2014
Presentation Financial Results 2nd Quarter 2014
November 2014
Presentation Financial Results 3rd Quarter 2014
INVESTORS' DAY 2014 – UNAUDITED FINANCIAL STATEMENTS 1ST QUARTER 2014
FP GROUP INVESTORS DAY
MANAGEMENT BOARD OF FRANCOTYP-POSTALIA HOLDING AG
BIRKENWERDER | 28 MAY 2014